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Is Gold Still a Good Investment?
Whether you're looking at the stock market or the metals market - the only thing you can depend on is that they will continuously be changing. With the market value of gold recently dropping from an all time high of almost $1,900 an ounce, we might ask ourselves is gold still a good investment?
Let's take a look at gold vs the stock market as presented in an article by 24 Hour Gold with regard to investment vs. return. In this article, they state that had you invested $10,609.37 in the Stock Market (DOW) in the month of May of 2000, that in June, 2006 you would have had to pay $10,706.37 for the same amount of stocks, and today (as of Sept, 2011) you would have had to pay $10,771.48 - again for the same stocks. If you're looking for an increase in your investment, that's a measly $162.11 difference over more than a ten year period.
However, had you taken that same $10,609.37 and purchased gold, you'd be looking at significantly different numbers. By comparison, had you invested that same $10,609.37 in gold bullion back in May, 2000; as of June, 2007 you would have had a gold market value of approximately $21,660.00 and today (as of Sept, 2011) you'd have a gold market value of $63,552.00. Calculating the difference from May, 2000 as it relates to current September, 2011 gold market values, you'd find you have a difference of $52,780.52. That's quite an difference.
While these numbers present a strong argument for investing in gold, only the individual can make the final decision if buying gold bullion is right for them based on their budget and their portfolio needs.
To read the full article posted by 24 Hour Gold, please visit this link.
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